Eastern Europe will soon overtake Southern Europe in terms of living standards

In terms of standard of living, the countries of Eastern Europe, which almost forty years ago came out of the influence of the Soviet Union and later joined the European Union, will soon overtake Southern Europe.

Bloomberg writes about it.

The International Monetary Fund forecasts that by 2029 per capita income in Slovenia will exceed that in Italy adjusted for purchasing power. Lithuania is on par with this indicator, and Poland will not be far behind.

The process of enrichment of Eastern European countries, which became EU members in 2004, was not as fast as expected.

The recent progress is also likely the result of trends that economists did not foresee: Central and Eastern European countries have seen a sharp rise in output thanks to foreign investment, market access and EU funds, while Italyʼs economy has grown more slowly than theirs.

Wealthier populations in Eastern Europe have already felt the benefits of rising living standards: the outflow of workers seeking higher wages elsewhere has begun to decline. And local governments hope that proportionally larger economies will have more political influence.